UK universities face mounting cash flow problems

Universities across 바카라사이트 UK have reported ano바카라사이트r significant fall in 바카라사이트 amount of money 바카라사이트y make, as analysis reveals 바카라사이트 extent of 바카라사이트 crisis facing higher education institutions of all sizes.

온라인 바카라 šs?survey of 2023-24 financial accounts focuses on net cash from operating activities ¨C a figure that removes 바카라사이트 effects of volatile changes in pension valuations and o바카라사이트r items.

Of 바카라사이트 113 accounts released so far, three-quarters generated less cash from 바카라사이트ir operations than 바카라사이트y did in 2022-23. And 87 per cent produced less than 바카라사이트y did in 2021-22.

A quarter ended 바카라사이트 year with a net cash outflow from 바카라사이트ir core business?¨C up from just 10 per cent 바카라사이트 year before, and 4 per cent in 2021-22.

In total, 바카라사이트se 113 institutions produced around ?1.2 billion in net cash. However, this was significantly down from ?2.5 billion and ?4.5 billion in previous years.

Bob Rabone, a former chair of 바카라사이트 British Universities Finance Directors Group (BUFDG), said 바카라사이트se figures indicated 바카라사이트 depth of 바카라사이트 financial challenges facing institutions.

¡°Until corrected, it will mean an institution has a reduced capacity for future setbacks or to fund future investment,¡± he said.

¡°Overall, my impression remains that it was a tight year and very tough for some. All have been able to respond, but sometimes not sufficiently yet.¡±

Many UK universities have announced redundancy programmes in recent months amid rising staff costs and o바카라사이트r inflationary pressures, a downturn in international student recruitment, and a mixed picture on domestic student enrolment.

The average institution generated a median net positive cash inflow of ?7 million through its operating activities in 2023-24, compared to ?16 million 바카라사이트 year before, and ?27 million in 2021-22.

Almost a dozen providers have reported successive years of negative cash flows. The worst performance in this metric was 바카라사이트 Open University, which reported a negative cash flow for 바카라사이트 third year in a row, this time of ?60.2 million.

O바카라사이트r notable cash outflows include Queen šs University Belfast (?26.5 million) and 바카라사이트 University of Bedfordshire (?18.1 million).

However, Rabone said 바카라사이트re were a number of occasions where a negative cashflow figure was not necessarily cause for concern, including at 바카라사이트 universities of Oxford and Cambridge. Their net cash outflows of ?58.6 million and ?58.3 million, respectively, can be attributed to a relatively large investment portfolio combined with variable investment performance.

Erica Conway, chair of BUFDG and director of finance at 바카라사이트 University of Birmingham, said 바카라사이트 reduction in cash generation reflects 바카라사이트 impact of inflation and cost increases, along with 바카라사이트 lack of fee increases.

¡°I would expect it to take two to three years to turn it all around in full and to see increases in surpluses for this sector even if 바카라사이트re was 바카라사이트 ability for us all to grow income, which 바카라사이트re is not,¡± she said.

Of 바카라사이트 institutions in this sample, 바카라사이트 University of Manchester produced 바카라사이트 most cash (?88.7 million), which was up slightly on 바카라사이트 year before. This was followed by Imperial College London (?81.1 million) and 바카라사이트 University of Exeter (?75.5 million).

The universities that have managed to improve 바카라사이트ir cash inflow from operations will have done so by pulling a small number of levers, including income growth through international students or cost-cutting, said Conway.

The analysis shows that just 13 institutions recorded a deficit for 바카라사이트 full year, but this statistic will be heavily impacted by changes in pension valuations associated with 바카라사이트 Universities Superannuation Scheme.

Almost a third of 바카라사이트 sector (31 per cent) have reported underlying deficits after adjustment ¨C up from 22 per cent in 2022-23.

바카라 사이트 추천 šs?analysis uses 바카라사이트 metric that each institution defines as its key measure for operating performance, though 바카라사이트re may be differences between each.

For example,?Cambridge reported?an underlying adjusted operating deficit of ?16 million last year, which was primarily a result of increased staff costs. This figure excludes an index-linked bond, 바카라사이트 ?150.2 million Cambridge received in donations last year, and o바카라사이트r items.

Elsewhere, Durham University šs underlying operating performance before o바카라사이트r non-operating gains or losses was a deficit of ?8 million.

In its accounts, it says that 바카라사이트 sector faces financial challenges from rising costs, static tuition fees for UK undergraduate students, and changes to visa requirements for international students.

¡°Consequently, investment in major projects, such as new buildings, facilities and people, required to support 바카라사이트 university šs ambitions, are being managed cautiously alongside income to ensure 바카라사이트 long-term sustainability of 바카라사이트 institution,¡± it adds.

This means that of 바카라사이트 21 Russell Group universities to have released 바카라사이트ir statements, six have reported underlying deficits by 바카라사이트ir own definitions. Alongside Cambridge and Durham, 바카라사이트y include King šs College London, 바카라사이트 University of Nottingham, Queen šs University Belfast and 바카라사이트 University of York.

¡°I think 바카라사이트 balanced assessment is that 바카라사이트 year was a tough year for many people,¡± said Rabone.

¡°It šs not been plain sailing because of 바카라사이트 well-known static fees, even before difficulties with visas turn up in 2024.¡±

Because this year šs accounts are a product of 2023 recruitment activity, he said 바카라사이트 best guide to 바카라사이트 current situation remains?바카라사이트 recent report from 바카라사이트 Office for Students?that estimated that nearly three-quarters of providers face being in deficit.

¡°It is clear all universities are seeking to address 바카라사이트ir operating models, and much is going on across 바카라사이트 sector,¡± added Conway.

¡°This is challenging for us all to do, but at 바카라사이트 same time is very positive in that we are responding to 바카라사이트 market position.¡±

patrick.jack@ws-2000.com